Thursday, March 17, 2016

CBO suggests taxing drivers by the mile

Shirley said that one way to charge drivers more is to implement “vehicle-miles traveled charges.”

Some members of Congress and some officials in the Obama administration have argued for years that a vehicle miles traveled tax, or a “VMT” tax, should be imposed in order to create more federal highway revenue. The Obama administration in 2011 floated a draft bill that would have created a VMT.

Among other things, that plan foresaw the installation of equipment on people’s cars and trucks that would measure how far they drive, and the collection of taxes electronically through a reading of those devices at gas stations.

More recently, some Democrats have proposed legislation creating a VMT tax. But none of these plans have advanced in the Republican-led Congress.

CBO’s presentation also said the government could get more money from drivers by charging them more when traffic is bad. Shirley calls that “congestion pricing.”

A third option, Shirley said, would be “allowing tolling on additional existing interstates.”